The Metalstech Ltd (ASX: MTC) share price is soaring today after the company released an update on its lithium spin-out plans.
Metalstech has set a date for its shareholders to vote on the spin-out, which would see the company's lithium assets held under Winsome Resources.
If passed, Metalstech shareholders will receive 1 Winsome share – worth 20 cents – for every 3.5 Metalstech shares in their portfolio.
Right now, the Metalstech share price is 28.5 cents, 16.33% higher than its previous close.
Let's take a closer look at today's news from the lithium, cobalt, and gold exploration company.
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Shareholders to vote on lithium spin-out
The Metalstech share price is soaring today after the company announced more news of its planned lithium spin-out.
As part of the spin-out, the company will be giving its shareholders $9 million worth of Winsome shares for free.
Metalstech's shareholders will receive a combined 45 million shares in Winsome.
Shareholders will have the opportunity to vote for or against the spin-out on 4 October. Metalstech has already received indications of support for the spin-out from its major shareholders.
It has previously announced $3 million of Winsome shares will be included in a cornerstone subscription by Lithium Royalty Corp.
Metalstech has also previously stated Winsome's initial public offering (IPO) will be valued at between $12 million and $18 million.
Lithium Royalty Corp has also paid Metalstech $6.65 million for a gross revenue royalty over the Cancet, Adina, and Sirmac-Clapier lithium assets.
Metalstech share price snapshot
Today's gains included, the Metalstech share price has soared around 45% since the start of 2021.
It is also about 60% higher than it was this time last year.
At its current share price, the company has a market capitalisation of around $49 million. It has approximately 158 million shares outstanding.
